Pebblebrook Hotel reports Q1 adjusted FFO 16c, consensus 13c

Reports Q1 revenue $320.27M, consensus $322.08M. “Our first-quarter results were propelled by strong occupancy gains and elevated ancillary revenue at our resorts and recently redeveloped properties, which continue to ramp up and capture additional market share. In our urban markets, Washington, D.C. benefited from inauguration-related activities, while San Francisco generated strong results driven by rising business and leisure demand and a healthy convention calendar. Chicago and Portland also performed well, as these previously slower-to-recover markets continue to improve. Our first-quarter Same-Property Hotel EBITDA beat was primarily driven by a steadfast focus on driving lasting efficiencies across our hotel operating models and disciplined cost control efforts. Same-Property Total Expense growth was limited to just 3.7 percent-significantly below the low end of our 5.0 percent outlook-highlighting our hotel teams’ ability to relentlessly generate efficiencies and quickly adapt to changes in the operating environment. As we look to the second half of the year, we are taking a more cautious stance due to the growing macroeconomic uncertainty and the potential impact on both domestic and international travel. We have modestly reduced and widened our full year 2025 outlook to reflect potential softness in business, leisure and government-related demand. While consumer sentiment has declined, we have yet to see a meaningful shift in actual travel trends, aside from reductions in government-related and Canadian travel. Nonetheless, persistent volatility is making near-term forecasting more challenging. We remain focused on what we can control-adjusting our operating strategies, driving revenues, and maintaining rigorous cost discipline to safeguard profitability as conditions evolve,” said Jon Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel (PEB) Trust.